2024

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
Ripple's Chief Legal Officer Stuart Alderoty recently took to X to highlight the recent setback for the <a href="https://u.today/sec-v-kraken-key-takeaways-from-latest-court-session" rel="noopener noreferrer nofollow">SEC</a> in its lawsuit against Kraken. Alderoty <a href="https://x.com/s_alderoty/status/1827175113072029871" rel="noopener noreferrer nofollow">tweeted</a>, "Another court, this time in the Kraken case, confirms there's no such thing as a crypto asset security. Bad news for the SEC, whose entire regulation-by-enforcement strategy hinges on that failed premise."
<blockquote>
 Another court, this time in the Kraken case, confirms there's no such thing as a “crypto asset security.” Bad news for the SEC, whose entire regulation-by-enforcement strategy hinges on that failed premise. <a href="https://t.co/gSSOmGDQQU" rel="noopener noreferrer nofollow">https://t.co/gSSOmGDQQU</a>— Stuart Alderoty (@s_alderoty) <a href="https://twitter.com/s_alderoty/status/1827175113072029871?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 24, 2024</a>
</blockquote>
According to Kraken’s Chief Legal Officer Marco Santori, the SEC unqualifiedly lost on its "tokens are securities" theory, and will not be permitted to rely on it going forward, dealing a major blow to the agency in its bid to classify tokens as securities.
Kraken’s chief legal officer hailed the ruling as a finding that none of the tokens trading on Kraken are securities.
The court's decision in the Kraken case mirrors a similar distinction made in the <a href="https://u.today/ripple-v-sec-legal-expert-highlights-flaws-in-secs-case" rel="noopener noreferrer nofollow">Ripple case</a>: While a token itself is not considered a security, agreements surrounding the token could potentially be classified as such. This nuanced understanding is why the court allowed the case to proceed to discovery, despite rejecting the SEC's broader claims.
<h2 id="kraken-clo-hails-ruling-as-significant-win-for-kraken">Kraken CLO hails ruling as significant win for Kraken</h2>
Despite the court allowing the SEC lawsuit against <a href="https://u.today/kraken-v-sec-whats-new-in-legal-saga" rel="noopener noreferrer nofollow">Kraken</a> to proceed, Kraken’s CLO Marco Santori hailed the ruling, which rejected SEC's broader claims on tokens being "crypto asset security," to be a significant win.
"The court found the SEC’s self-serving invention of the crypto asset security concept to be unclear at best and confusing at worst," Santori noted stating that the court called out the SEC’s straw man tactics on its consistent mischaracterization of Kraken’s position as requiring a “written contract” for there to be a security.
However, Kraken must face the SEC lawsuit accusing it of operating an unregistered securities exchange, a judge ruled. "The SEC has plausibly alleged that at least some of the cryptocurrency transactions that Kraken facilitates on its network constitute investment contracts, and therefore securities, and are accordingly subject to securities laws," U.S. District Judge William H. Orrick wrote.
Kraken had requested the judge to dismiss the case filed by the SEC in November.

Ripple Celebrates Another SEC Loss: Details

Table of Contents

U_Today

Other articles published on Aug 24, 2024

How Sahil Arora Netted $3M with Celeb Token Pump-and-Dump Schemes

Analyst eyes Ether ‘major push’ to $3.5K amid traders betting on upswing

VET Breaks $0.024 Resistance, VeChain Poised for Gains with NYC Access With Institutional Interest

Bitcoin ETFs see a $252 million inflow, signaling strong investor confidence

Could the SEC’s Latest Rulings Shift the Market? Altcoins to Watch in 2024

Bitcoin to break all-time high during the U.S. elections

Join our free newsletter for daily crypto updates!